Is Digital Realty Trust, Inc. overvalued?

In our latest published analysis dated 2026-09-27, DLR looks meaningfully overvalued. The price recorded at analysis is 179 USD versus our fair value of 135 USD; the high endpoint is presented separately as potential value of 168 USD. That implies roughly 24.6% downside to fair value at that date.

What is DLR's fair value?

Our latest published report, analyzed 2026-09-27, gives DLR a fair value of 135 USD and a potential value of 168 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Digital Realty Trust, Inc.'s archetype; it is a dated research output, not a live price.

Should I buy DLR now?

Our latest published rating for DLR, analyzed 2026-09-27, is Sell. Digital Realty Trust, Inc. looks meaningfully overvalued at the analysis-date price of 179 USD versus fair value of 135 USD; potential value is 168 USD. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for DLR?

The dedicated bear-case section in our report analyzed 2026-09-27 documents Digital Realty Trust, Inc.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.

What is DLR's rating?

Our latest published rating for DLR, analyzed 2026-09-27, is Sell, with a published moat assessment of 7/10 (Narrow). It reflects our fair value of 135 USD, the potential value of 168 USD, and the price recorded at analysis (179 USD).

What archetype is DLR?

In the latest published report analyzed 2026-09-27, Digital Realty Trust, Inc. is classified as a REIT stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for DLR.

DLR stock analysis | StockMarketAgent.AI

StockMarketAgent researchAnalizado 2026-09-27

Digital Realty Trust, Inc.

DLR

Vender

Potencial de caída del 24,6 % hasta el valor razonable

Report-date price

178,61 US$

Recorded 2026-09-25

Valor razonable

134,60 US$

Valor potencial

168,08 US$

Extremo superior de valoración

Ventaja competitiva

Narrow7 / 10

Respaldo en inglésES

Mostrando la fuente en inglés mientras traducimos

Este informe aún no se ha traducido. Actualice en unos minutos una vez que la cola de traducción se ponga al día.

§1 Resumen ejecutivoEN

Respuesta en 30 segundosSell

Precio frente a valor

Precio: $178.61
Valor razonable: $134.60
Valor potencial: $168.08
A fecha de: 2026-09-25

Por qué puede funcionar

Accelerating enterprise cloud and artificial intelligence infrastructure demand in utility-constrained Tier-1 metropolitan markets enables Digital Realty to achieve double-digit positive rental renewal spreads on PlatformDIGITAL, driving FY2026 revenue growth toward 16.55% and expanding operating margins from 10.77% toward normalized levels.

Qué cambiaría nuestra opinión

A 200 bps increase in debt refinancing yields driving pre-tax cost of debt above 8.35% across Digital Realty's $24,182,228,000 total debt burden.

Digital Realty Trust is rated Sell because its share price of $178.61 on September 25, 2026 sits well above its Fair value of $134.60, as high debt and ongoing cash deficits outweigh data center demand.^4,5

The house rating on Digital Realty Trust is Sell. For an ordinary investor, this rating means capital should be protected by selling or trimming existing shares and avoiding new purchases. The market valuation has run ahead of the company's financial results, leaving no margin of safety.⁴

§2 Caso bajistaEN

A severe stagflationary environment combining sustained 8.35% borrowing rates with utility substation energization deferrals would severely pressure Digital Realty's financial structure. Because capital expenditures of $3,181,179,000 already exceed operating cash flow of $2,412,136,000 to produce negative free cash flow of -$769,043,000, an escalation in annual interest expense beyond the FY2025 level of $437,947,000 would eliminate dividend coverage and accelerate equity dilution.

Bear scenario

Bear

Probability

25%

Return

-49.7%

Path target

$89.78

Utility energization delays deferring scheduled lease commencements
Higher debt refinancing rates increasing overall interest obligations
Colocation pricing competition restraining operating margin expansion

The downside scenario reflects persistent utility transmission bottlenecks deferring high-density campus deliveries, coupled with rising debt yields across maturing borrowings. Heightened interest expense compresses distributable cash flow while colocation peer competition restrains pricing leverage. Disconfirmation occurs if power energization accelerates or borrowing spreads narrow sharply.

Cómo puede fallar esta tesis

Refinancing cost surge on $24.18B debt load elevates debt service and drives cost of capital 200 bps higher

Digital Realty carries $24,182,228,000 in total debt with pre-tax cost of debt at 6.35%. A 200 bps increase in borrowing yields drives pre-tax cost of debt above 8.35%, raising WACC above 8.26% and dropping dividend discount fair value by 24.0%.^2,4

FV impact

-4%

Cost of capital 2 points higher

Trigger

Within 12 months

Señales de alerta temprana a vigilar

Los cinco acontecimientos que debilitarían nuestra tesis de inversión.

Annual Debt Refinancing Pre-Tax Yield

A sharp increase in refinancing rates escalates debt service requirements across maturing debt tranches, diverting operational cash flow away from capital distributions and severely compressing net margins and per-share cash available to equity investors.

Actual:6.35% as of 2026-09-27

Alerta siAbove 8.35% within 12 months

§3 Foso competitivoEN

Narrow

Digital Realty commands a narrow economic moat rooted in network effects across PlatformDIGITAL, enterprise switching costs, and efficient physical scale. Product Rental and Other Services generated $5,968,918,000 in FY2025, representing 97.65% of consolidated revenue and delivering steady recurring cash flows.

The company's economic profit generation remains temporarily constrained by massive development spending. Heavy capital investments suppress current return on invested capital to 2.31%, trailing its 8.26% computed WACC. Nevertheless, underlying operating cash flow of $2,412,136,000 affirms that its interconnected campus network preserves high customer retention and pricing stability across contract cycles.

Beneficio económico

Reported return on invested capital of 2.31% sits below computed WACC of 8.26% due to heavy ongoing development capital deployment ($3,181,179,000 capex in FY2025). However, substantial operating cash generation of $2,412,136,000 supports structural economic durability across a 12-year competitive horizon.^2,4,6

7/ 10

Narrow

Sources of advantage

Network EffectsCarrier-neutral interconnection density on PlatformDIGITAL links global enterprises, cloud platforms, and network providers across primary metropolitan markets, generating self-reinforcing network effects.Moderate
Switching CostsMulti-year colocation leases and high technical re-cabling and migration costs create substantial barriers to tenant relocation, ensuring 97.65% recurring rental revenue stability.Wide
Efficient ScaleAn extensive footprint across 50+ metropolitan markets with 48.18% non-US revenue creates an international operational scale that sub-scale colocation providers cannot replicate.

Amenazas conocidas al foso
Amenaza	Severidad	Cronograma	Mitigación
Electric utility substation energization bottlenecks delaying capacity deployment in key metropolitan centers	medium	12 to 24 months	Broad international footprint across 50+ metropolitan areas and proactive procurement of electrical substation infrastructure.⁷

§5 Sensibilidad

Tasa de descuento

Crecimiento terminal

	2.0%	2.3%	2.5%	2.8%	3.0%
7.9%	$152.93	$153.61	$154.35	$155.17	$156.07
8.4%	$142.27	$142.84	$143.45	$144.12	$144.85
8.9%	$133.61	$134.08	$134.60	$135.16	$135.76
9.4%	$126.41	$126.82	$127.25	$127.72	$128.23
9.9%	$120.32	$120.67	$121.05	$121.45	$121.87

Filas: tasa de descuento (Ke para beneficios; WACC para flujo de caja). Columnas: crecimiento terminal.

Cambio de duración (años)

None of the valuation methods used to calculate Fair value relies on a separate assumption about how long the competitive advantage lasts.

Sensitivity reference

The highlighted cell is Fair value when every assumption sits at its base level ($134.60). Each row and column shows what Fair value becomes when one assumption moves.

Acantilado de FCF

A free-cash-flow drop test is not available in this run; use the discount-rate and terminal-growth grid as the primary valuation pressure test.

§7 Árbol de decisión de resultadosEN

Superado

Upgrade the rating; Use operational strength to trim portfolio exposure, reviewing debt maturity schedules and development capital commitments before reallocating capital.

Disparador: Consolidated quarterly revenue and earnings per share exceeding consensus expectations alongside accelerating rental renewal rate spreads.

Quarterly upside from accelerated hyperscale lease commencements confirms strong operational execution but does not eliminate balance sheet debt service headwinds or justify prevailing valuation levels.

En línea

Maintain Sell; Maintain disciplined underweight positioning, tracking whether operating cash flows adequately cover ongoing development outlays and dividend requirements.

Disparador: Consolidated revenue and earnings per share matching consensus forecasts with stable colocation occupancy across major campuses.

In-line quarterly results affirm steady colocation demand while continuing to reflect elevated financing costs and heavy development capital expenditures.

Fallo

Exit the position; Exit residual holdings promptly, monitoring power delivery timelines and liquidity reserves for signs of accelerated deterioration.

Disparador: Revenue or earnings per share falling short of consensus targets due to power connection delays or tenant renewal concessions.

A quarterly shortfall signals emerging utility energization friction or leasing slowdowns, exacerbating financing strains across the debt capital structure.

Calidad de los beneficios

Reported earnings depend heavily on non-cash depreciation adjustments typical of real estate portfolios, while operating cash flows remain insufficient to fund aggressive development capital outlays without ongoing external capital market financing.

Métricas a vigilar antes de la publicación

Métrica:
Utility Power Energization Timelines
ActualUtility transmission bottlenecks in primary metropolitan markets create delivery lags for hyperscale artificial intelligence halls.
Por qué importa
Power delivery pacing dictates when newly built data halls can commence billing and convert construction spending into cash revenue.
Métrica:
Debt Refinancing Spreads
ActualRefinancing yields remain elevated compared to historical debt coupon rates across the debt structure.
Por qué importa

§8 Historial financiero

Cuenta de resultados — últimos seis períodos
Period	2021-12-31	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	$4.43B	$4.69B	$5.48B	$5.55B	$6.11B	+8.4%
Gross profit	$2.65B	$2.67B	$2.88B	$3.04B	$3.39B	+6.3%
Operating income	$694.0M	$590.0M	$524.5M	$471.9M	$658.5M	-1.3%
Net income	$1.71B	$377.7M	$948.8M	$602.5M	$1.31B	-6.5%
EPS (diluted)	$5.94	$1.11	$2.88	$1.61	$3.58	-11.9%
EBITDA	$3.60B	$2.29B	$3.16B	$2.87B	$3.59B	-0.1%
R&D	$0	$0	$0	—	—	-31.9%
SG&A	$400.7M	$422.2M	$449.1M	$480.0M	$560.5M	+8.8%

Previsión anual aceptada
Métrica	2026	2027	2028	2029	2030
Revenue	$7.12B	$7.90B

Flujo de caja

Operating cash flow reached $2,412,136,000 in FY2025, but capital expenditures of $3,181,179,000 resulted in negative free cash flow of -$769,043,000. Discretionary growth spending accounts for roughly 80% of total capex, while maintenance capex requires an estimated $636,235,800. Dividend commitments of $1,728,466,000 necessitate ongoing external capital market financing.^4,5,6

Asignación de capital

Capital allocation prioritizes aggressive development buildouts ($3,181,179,000 capex in FY2025) and regular distributions ($1,728,466,000 ). With total debt at $24,182,228,000 and pre-tax borrowing yields at 6.35%, funding deficits require regular equity issuance, expanding from 309,065,000 in FY2023 to 370,999,000 in September 2026.

ROIC

Massive capital deployed in construction work-in-progress dampens near-term return metrics, though cash yields should gradually improve as newly developed campuses reach full billing utilization.

Return on invested capital of 2.31% sits below computed WACC of 8.26%, reflecting significant capital tied up in non-earning development projects.

Rental and colocation operations drive recurring revenue stream

Product Rental and Other Services generated $5,968,918,000 in FY2025, comprising 97.65% of consolidated revenue ($6,112,692,000).

Provides stable baseline operational cash flows ($2,412,136,000 operating cash flow in FY2025) but leaves overall financial performance wholly reliant on data center leasing conditions.

Massive capital expenditure generates persistent negative

Ingresos más recientes6112,7 M US$CAGR de ingresos +12,4 %

Margen operativo10,8 %10 periodos fiscales

Flujo de caja libre más reciente-769 M US$FY2025

Deuda neta20,7 mil M US$FY2025

Desglose de la cuenta de resultadosCómo la escala del negocio se convierte en beneficio declarado.

StockMarketAgent.AI

Datos del historial financiero
Ingresos	6.112.692.000 US$
Coste de ventas	2.726.737.000 US$
Beneficio bruto	3.385.955.000 US$
Gastos operativos	2.727.463.000 US$
Beneficio operativo	658.492.000 US$
Partidas no operativas e impuestos	650.097.000 US$
Beneficio neto	1.308.589.000 US$

Resumen del balanceCómo se mantienen y financian los activos declarados en el período seleccionado.

StockMarketAgent.AI

Datos del desglose del balance
Activos totales	36.369.560.000 US$
Efectivo	142.698.000 US$
Activos corrientes	814.419.000 US$
Pasivos totales	17.845.778.000 US$
Pasivos corrientes	2.617.102.000 US$
Patrimonio neto	18.476.787.000 US$

Puente de flujo de cajaCómo el flujo de caja operativo se convirtió en flujo de caja libre en FY2025.

StockMarketAgent.AI

Conciliación del flujo operativo

Beneficio neto1308,6 M US$Depreciación y amortización+1894,6 M US$Compensación basada en acciones+70,2 M US$Otros ajustes operativos−861,3 M US$Flujo de caja operativo2412,1 M US$

Conciliación del efectivo inicial al final

Efectivo inicial3876,7 M US$Flujo de caja operativo+2412,1 M US$Flujo de inversión−2230,5 M US$Flujo de financiación−486,7 M US$Efecto del tipo de cambio−113,3 M US$Efectivo final3458,3 M US$

2412,1 M US$ − 3181,2 M US$Flujo de caja libre -769 M US$

Datos del puente de flujo de caja
Beneficio neto	1.308.589.000 US$
Entrada operativa	3.273.452.000 US$
Depreciación y amortización	1.894.636.000 US$
Compensación basada en acciones	70.227.000 US$
Flujo de caja operativo	2.412.136.000 US$
Salida operativa	861.316.000 US$
Efectivo disponible	6.288.836.000 US$
Efectivo inicial	3.876.700.000 US$
Salida de inversión	2.230.472.000 US$
Salida de financiación	486.738.000 US$
Efecto del tipo de cambio	113.336.000 US$
Efectivo final	3.458.290.000 US$
Flujo de inversión	-2.230.472.000 US$
Flujo de financiación	-486.738.000 US$

Ingresos por categoría de negocioProporción de los ingresos totales de 2025-12-31.

Ingresos por categoría de negocioProporción

Rental And Other Services5968,9 M US$97,6 %+8,9 % interanual

Fee Income And Other143,8 M US$2,4 %+98,3 % interanual

Fuente: SEC EDGAR · Presentado 2026-02-13 · SEC EDGAR

Datos de composición de ingresos: Ingresos por categoría de negocio
Ingresos por categoría de negocio	Ingresos	Proporción	interanual
Rental And Other Services	5968,9 M US$	97,6 %	8,9 %
Fee Income And Other	143,8 M US$	2,4 %	98,3 %

Ingresos por regiónProporción de los ingresos totales de 2025-12-31.

Ingresos por regiónProporción

United States3167,7 M US$51,8 %+8,8 % interanual

Non Us2945 M US$48,2 %+11,4 % interanual

Fuente: SEC EDGAR · Presentado 2026-02-13 · SEC EDGAR

Datos de composición de ingresos: Ingresos por región
Ingresos por región	Ingresos	Proporción	interanual
United States	3167,7 M US$	51,8 %	8,8 %
Non Us	2945 M US$	48,2 %	11,4 %

Ingresos y beneficiosCómo la escala del negocio se convierte en beneficio declarado.

Efectivo y deudaLiquidez disponible frente al endeudamiento total.

Generación de efectivoFlujo de caja operativo frente al flujo de caja libre.

RentabilidadEvolución de los márgenes bruto, operativo y neto.

Datos financieros puntuales utilizados en el análisis del 2026-09-27.

Datos del historial financiero
Período	Ingresos	EBITDA	Beneficio neto	Flujo de caja operativo	Flujo de caja libre	Capex	Depreciación y amortización	Compensación basada en acciones	Recompras de acciones	Dividendos pagados	Emisión neta de deuda	Flujo de inversión	Flujo de financiación	Efectivo inicial	Efectivo final	Efectivo e inversiones	Deuda total	Margen operativo	ROIC	WACC	Diferencial ROIC−WACC
2016-12-31	2142,2 M US$	1382,6 M US$	426,2 M US$	911,2 M US$	136,9 M US$	774,3 M US$	699,3 M US$	17,4 M US$	—	521,6 M US$	—	-1303,6 M US$	350,6 M US$	—	22 M US$	11,5 mil M US$	5838,6 M US$	23,2 %	—	4,8 %	—
2017-12-31	2457,9 M US$	1365,3 M US$	248,3 M US$	1023,3 M US$	-178,2 M US$	1201,5 M US$	842,5 M US$	20,5 M US$	—	646,4 M US$	—	-1357,2 M US$	321,2 M US$	22 M US$	13,2 M US$	16,8 mil M US$	8648,6 M US$	18,4 %	—	5,0 %	—
2018-12-31	3046,5 M US$	1851,6 M US$	331,2 M US$	1385,3 M US$	11,7 M US$	1373,7 M US$	1186,9 M US$	27,2 M US$	—	849,5 M US$	—	-3036 M US$	1757,3 M US$	13,2 M US$	135,2 M US$	146,8 M US$	11,1 mil M US$	18,0 %	—	6,0 %	—
2019-12-31	3209,2 M US$	2128 M US$	579,8 M US$	1513,8 M US$	-19,5 M US$	1533,3 M US$	1163,8 M US$	34,9 M US$	—	921,8 M US$	—	-275 M US$	-1272 M US$	135,2 M US$	97,3 M US$	92,2 M US$	11 mil M US$	18,5 %	—	5,1 %	—
2020-12-31	3903,6 M US$	2100,2 M US$	356,4 M US$	1706,5 M US$	-357,5 M US$	2064,1 M US$	1366,4 M US$	74,6 M US$	—	1162,8 M US$	—	-2599,3 M US$	935,7 M US$	97,3 M US$	123,7 M US$	108,5 M US$	14,8 mil M US$	14,3 %	—	3,1 %	—
2021-12-31	4427,9 M US$	3600,7 M US$	1709,3 M US$	1702,2 M US$	-818,5 M US$	2520,8 M US$	1486,6 M US$	84,1 M US$	201,3 M US$	1379,2 M US$	—	-1061,7 M US$	-590,6 M US$	123,7 M US$	151,5 M US$	20,9 mil M US$	15 mil M US$	15,7 %	—	3,2 %	—
2022-12-31	4691,8 M US$	2288,9 M US$	377,7 M US$	1659,4 M US$	-983,7 M US$	2643,1 M US$	1577,9 M US$	92,5 M US$	0 US$	1450,6 M US$	3444,6 M US$	-4699,4 M US$	2969,1 M US$	151,5 M US$	150,7 M US$	158,9 M US$	18,7 mil M US$	12,6 %	—	6,4 %	—
2023-12-31	5477,1 M US$	3158,5 M US$	948,8 M US$	1634,8 M US$	-1890,8 M US$	3525,6 M US$	1694,9 M US$	80,5 M US$	0 US$	1520,6 M US$	334,4 M US$	-1115,1 M US$	963,5 M US$	150,7 M US$	1636,5 M US$	1634 M US$	19 mil M US$	9,6 %	—	8,1 %	—
2024-12-31	5555 M US$	2867,7 M US$	602,5 M US$	2261,5 M US$	-570,3 M US$	2831,7 M US$	1771,8 M US$	75,6 M US$	—	1633,2 M US$	37,3 M US$	-1906,2 M US$	2063,4 M US$	1636,5 M US$	3876,7 M US$	3870,9 M US$	18 mil M US$	8,5 %	—	12,7 %	—
2025-12-31	6112,7 M US$	3587,5 M US$	1308,6 M US$	2412,1 M US$	-769 M US$	3181,2 M US$	1894,6 M US$	70,2 M US$	—	1728,5 M US$	190,6 M US$	-2230,5 M US$	-486,7 M US$	3876,7 M US$	3458,3 M US$	3451,6 M US$	24,2 mil M US$	10,8 %	—	8,5 %	—

§9 Comparación de valoración con pares

Digital Realty Trust, Inc.DLR

Precio / valor razonable

Valor razonable134,6 US$Report-date price178,61 US$

Fecha de evaluación27 sept 2026

Ventaja competitivaNarrow

Cuadro de mando de inversión49 / 100

American Tower CorporationAMT

Precio / valor razonable

Valor razonable148,44 US$Report-date price169,03 US$

Fecha de evaluación27 sept 2026

Ventaja competitivaNarrow

Cuadro de mando de inversión57 / 100

Equinix Inc.EQIX

Precio / valor razonable

Valor razonable878,96 US$Report-date price1048,43 US$

Fecha de evaluación20 may 2026

Ventaja competitivaWide

Cuadro de mando de inversión56 / 100

Digital Realty Trust, Inc.DLR

Precio / valor razonable

Valor razonable134,6 US$Report-date price178,61 US$

Fecha de evaluación27 sept 2026

Ventaja competitivaNarrow

Cuadro de mando de inversión49 / 100

Múltiplos de pares y rentabilidad
Símbolo	Nombre	Cap. mercado	P/E	P/S	EV/EBITDA	ROE

Digital Realty Trust Inc. (DLR) trades at 66.2x forward earnings against a peer median of 42.1x. Its EV/EBITDA of 27.1x compares with a peer median of 22.8x. The comparison uses 4 peers: American Tower Corporation, Equinix Inc., Simon Property Group Inc. and Welltower Inc., as of 2026-09-27.

§10 Industria y cicloEN

Fase del ciclo

Expansion

Industry capital expenditures represent -12.7% of revenue and 0.17 of depreciation, while Digital Realty deployed $3,181,179,000 in FY2025 capex.⁴

Ciclo alcista

The secular upcycle is powered by structural cloud infrastructure migration and artificial intelligence computing workloads, generating intense pre-leasing demand and positive renewal rental spreads across interconnected data halls.

Ciclo bajista

A cyclical downturn involves prolonged electric utility transmission delays deferring data center openings, rising corporate debt refinancing yields, and tenant concessions that depress rental growth and colocation pricing.

Tendencias seculares
Tendencia	Impacto	Nota
Generative AI and Cloud Workload Migration	positive	Hyperscale cloud and artificial intelligence infrastructure demand drives massive need for high-density power and cooling across carrier-neutral colocation campuses.
Electric Power Grid Bottlenecks and Interconnection Delays	negative	Electric utility transmission capacity limits in key Tier-1 metropolitan markets delay substation hookups, extending delivery timelines for new data center capacity.

Posicionamiento

Digital Realty occupies a critical global carrier-neutral colocation position alongside peer Equinix, but its FY2025 operating margin of 10.77% trails Equinix's 27.02% and American Tower's 45.41%, reflecting higher wholesale operational exposure.⁶

§11 Gestión de posiciónEN

Tamaño de posición

With the shares trading at $178.61 as of 2026-09-25 well above Fair value of $134.60, no long equity allocation is warranted under our sell rating.⁴

Riesgo

Risk controls center on avoiding equity positions where negative free cash flow (-$769,043,000 in FY2025) and heavy debt maturities ($24,182,228,000 total debt) create persistent refinancing exposure.

Tramos de entrada
Nivel	Acción	Por qué
Below $120.00	Initiate fundamental re-evaluation	Requires price contraction to the lower tier of NAV/AFFO valuation ($120.29) alongside verified stabilization of debt refinancing costs.
Below $90.00	Evaluate selective entry

Tramos de salida
Nivel	Acción
At or above $180.00	Liquidate existing long positions
Above $190.00	Complete total position exit

Puntos de control trimestrales
Métrica	Umbral	Acción
Consolidated Revenue Growth	Below 8.0% annual growth in FY2026	Enforce complete exit across all accounts.⁶
Operating Cash Flow

§14 Recomendación finalEN

Acción

Vender

We recommend a Sell rating on Digital Realty Trust. Trading at $178.61 on September 25, 2026, the stock stands 32.7% above our Fair value of $134.60 and above our Potential value of $168.08. While high-density AI demand drives 16.55% revenue growth in FY2026, the current stock price fails to price in the risks of $24,182,228,000 in total debt, persistent negative free cash flow (-$769,043,000 in FY2025), and ongoing shareholder dilution.^1,4,5

Investors should systematically reduce equity holdings, realizing gains while forward multiples remain elevated at 66.23x earnings. Capital should be redirected toward opportunities with an adequate margin of safety below intrinsic net asset value.

Biggest risk

A 200 bps increase in debt refinancing yields driving pre-tax cost of debt above 8.35% across Digital Realty's $24,182,228,000 total debt burden. Maturing debt obligations must be refinanced at prevailing benchmark yields, sharply expanding annual debt service requirements and raising the overall cost of capital (computed WACC at 8.26%). Annual net interest expense surges significantly beyond the FY2025 level of $437,947,000, compressing net income ($1,308,589,000 in FY2025) and distributable cash flow, while worsening negative free cash flow (-$769,043,000 in FY2025) and compelling dilutive equity issuance to bridge funding gaps. Track effective refinancing borrowing rates against the 8.35% danger threshold and monitor total annual net interest expense against a $550,000,000 ceiling in quarterly SEC filings.^2,4,

DLR	Digital Realty Trust Inc.	$67.5B	66.2x	10.0x	27.1x	2.9%	—
AMT	American Tower Corporation	$78.8B	24.1x	7.2x	18.2x	33.9%	45.4%
EQIX	Equinix Inc.	$99.5B	54.1x	10.0x	26.8x	10.7%	27.0%
SPG	Simon Property Group Inc.	$77.8B	30.1x	11.2x	18.8x	120.5%	46.0%
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Is Digital Realty Trust, Inc. overvalued?

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Digital Realty Trust, Inc.

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Descripción general de la empresa

Annual Debt Refinancing Pre-Tax Yield

Narrow

Sources of advantage

Lenses that set Fair value

Forward Earnings

Utility Power Energization Timelines

Debt Refinancing Spreads

Sources

Consolidated Annual Free Cash Flow

Consolidated Annual Revenue Growth Rate

Consolidated Operating Margin Level

Annual Non-US Revenue Growth

Owner Earnings

Dividend Discount Model

NAV / AFFO

Checks and reference points

Reverse DCF

Development Free Cash Flow Deficit

Non-US Colocation Lease Absorption

Interconnection Operating Leverage